World Dubai Ports (DP World) seems to have solved the issue of its American Terminals with the announcement of a deal between the prospective buyer of the terminals, AIG, and the New York and New Jersey Ports Authority.

The Port Authority had made a last minute intervention into the agreement between the insurance company AIG and DP World by demanding a fee of $84m, under a clause in the Terminal's contract with the Port Authority which gives the authority the right to approve any change of ownership.

The compromise worked out between the parties means that AIG will pay the Port Authority $50m or infrastructure developments in and around the port. This specifically includes AIG giving the Port $10m in payment for a bridge over a rail line plus $40m of future unspecified work.

Local politicians heavily criticised the New York and New Jersey Port Authority on the grounds that their last minute demands threatened a deal which in great part was politically driven.

It is assumed that this agreement will enable the sale of the American terminals to go ahead. Both DP World and AIG have said that they expect the deal to be concluded by March. Besides the Newark Terminal in New York/New Jersey this includes container terminals at Philadelphia, Baltimore, Miami, Tampa and New Orleans.

The price that AIG is paying for these assets has not been disclosed. AIG will run the terminal business as part of its investment portfolio. It is one of a number of financial institutions attracted to the steady returns that ports are perceived to offer, with Associated British Ports and Orient Overseas International terminals having been sold to similar types of investors last year.

DP World was forced to sell the important terminals when it bought P&O Ports last year for £3.5bn/6.8bn/€5.7bn. P&O's US investments were an important aspect of the business but anger at an Arab state owned company owning such high profile assets forced DP World to agree to divest themselves of the American terminals.